Sony Ericsson just published its Q4 and FY2011 earnings, and the issues that seemingly plagued HTC and, basically everyone but Samsung and Apple, like "intense competition and price erosion", have made it swing to a $317 million loss in Q4. Before that, in Q3, the company even eked out a profit, but now it tacks on "restructuring charges", and "Thailand flooding" to the list of reasons for its significant loss for the last quarter.
Sony Ericsson pegged its share of Android handsets globally at 10% in volume and 7% in value during Q4, and 10% in volume and 10% in value for the full year 2011, which confirms the dip in its average selling price for last quarter.
This will be the last earning report of Sony Ericsson before the end of the joint venture is final in financial aspect as well, and without the money it doled out for commencing the restructuring, the Q4 loss rang at $198 million. Here is the full breakdown of financials for the last two quarters, and fiscal years 2010 and 2011.
Let's not forget also that Sony Ericsson was mostly cruising in Q4, paying more attention to the restructuring after the breakup with Ericsson, rather than outing new handsets for the holiday season, so that's a big reason its shipped units diminished significantly from Q3 to Q4, as well as its ASP numbers. Bert Nordberg, President and CEO of Sony Ericsson, had the following comments on the last financial results coming from the joint venture as it was:
Q1 could be more of the same, but when Sony's first dual-core phones with HD screens and LTE, like theXperia S and Xperia ion launch in March-April, then Q2 might paint the very different picture of a resurging Sony, with its upcoming "four-screen" Dot Switch platform in tow.
source: SE
Sony Ericsson pegged its share of Android handsets globally at 10% in volume and 7% in value during Q4, and 10% in volume and 10% in value for the full year 2011, which confirms the dip in its average selling price for last quarter.
This will be the last earning report of Sony Ericsson before the end of the joint venture is final in financial aspect as well, and without the money it doled out for commencing the restructuring, the Q4 loss rang at $198 million. Here is the full breakdown of financials for the last two quarters, and fiscal years 2010 and 2011.
Q4 2010
|
Q3 2011
|
Q4 2011
|
FY 2010
|
FY 2011
| |
Number of units shipped (million)
Average selling price (Euro) |
11.2
136 |
9.5
166 |
9.0
143 |
43.1
146 |
34.4
152 |
Sales (Euro m.)
|
1,528
|
1,586
|
1,288
|
6,294
|
5,212
|
Gross margin (%)
|
30%
|
27%
|
24%
|
29%
|
28%
|
Operating income (Euro m.)
|
39
|
38
|
-227
|
159
|
-206
|
Operating margin (%)
|
3%
|
2%
|
-18%
|
3%
|
-4%
|
Restructuring charges (Euro m.)
|
-3
|
-
|
-93
|
-42
|
-93
|
Operating income excl. restructuring charges (Euro m.)
|
43
|
38
|
-134
|
202
|
-113
|
Operating margin excl. restructuring charges (%)
|
3%
|
2%
|
-10%
|
3%
|
-2%
|
Income before taxes (IBT) (Euro m.)
|
35
|
31
|
-247
|
147
|
-243
|
IBT excl. restructuring charges (Euro m.)
|
39
|
31
|
-154
|
189
|
-150
|
Net income (Euro m.)
|
8
|
0
|
-207
|
90
|
-247
|
Let's not forget also that Sony Ericsson was mostly cruising in Q4, paying more attention to the restructuring after the breakup with Ericsson, rather than outing new handsets for the holiday season, so that's a big reason its shipped units diminished significantly from Q3 to Q4, as well as its ASP numbers. Bert Nordberg, President and CEO of Sony Ericsson, had the following comments on the last financial results coming from the joint venture as it was:
Our fourth quarter results reflected intense competition, unfavorable macroeconomic conditions and the effects of a natural disaster in Thailand this quarter. We are aligning our business to drive profitability and to meet customer needs. In spite of these challenges, throughout 2011 we’ve shifted our business from feature phones to smartphones, and our Android-based smartphone sales in the quarter increased by 65% year-on-year. The Xperia portfolio, including the recently announced Xperia NXT series, will serve as a cornerstone of our smartphone lineup in 2012.
Q1 could be more of the same, but when Sony's first dual-core phones with HD screens and LTE, like theXperia S and Xperia ion launch in March-April, then Q2 might paint the very different picture of a resurging Sony, with its upcoming "four-screen" Dot Switch platform in tow.
source: SE
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